On Jun.25, 2010, China Beijing Equity Exchange (hereinafter called CBEX) officially initiated the capital increase with repo option trading, and launched the first high-tech SME trading project—the capital increase with repo option trading for Hunan Lunan Environmental Protection Co., Ltd. The project is traded by China Tech-Finance (Beijing) Asset Management Co., Ltd.

The trading refer to a financing transaction where a non-financial enterprise as a legal entity releases capital increase information through CBEX, determines the investors by means of the ways approved by CBEX, and stipulates that under a specific time limit and conditions, the investors shall have the right to require the enterprise or its controlling shareholders to buy, at the stipulated price, the equities subscribed by the enterprise. Repo option means the right owned by the investors, under which the investors may, under specific circumstance, require the enterprise, at the stipulated price, to repurchase the shares held by the investors, or to transfer the said shares to other shareholders. This kind of innovative trading model boasts strong attraction to SMEs and investors. Xiong Yan, chairman of CBEX, noted, “This product is launched by us after numerous efforts, which is designed to target at the financing difficult of SMEs, and allow for the actual needs of PE, VC, and other institutions.”